# Rewards ## The economic model of staking platform token DER DER Rewards offer long-term users benefits in the form of Escrowed DER and Multiplier Points. esDER is equivalent to DER, but it cannot be traded directly like DER. Instead, you need to stake esDER again and exchange it for DER within one year. ## **Escrowed DER** For "esDer," it means staked Der. This "esDer" is equivalent to Der, but it cannot be traded directly like Der. Instead, it needs to be staked again as esDer and converted into Der within one year. Here's an example: Suppose you initially staked 1000 Der and received 100 esDer. These 100 esDer can be staked in the esDer pool, where you can earn transaction fee rewards and reward multipliers. However, these esDer are non-transferable. To make them transferable/tradeable Der, you need to stake the esDer in the vesting pool. This way, the esDer will linearly convert into Der over 365 days, and the converted Der can be withdrawn at any time. However, it's important to note that if you withdraw the corresponding staked Der during the esDer vesting/staking period, both the esDer staking rewards and vesting will stop. Each withdrawal of staked Der will correspondingly stop the esDer rewards. Escrowed DER (esDER) serves two purposes: 1. Staked for rewards similar to regular DER tokens. 2. Vested to become actual DER tokens over a year. Staked DER receives three types of rewards: 1. esDer rewards: Pledgers will receive esDer, providing them with more incentives and rights to participate in governance on the platform. 2. Reward multiplier: Users who stake Der will enjoy a reward multiplier to maximize the benefits from their staking. 3. Handling fee dividend: The platform handling fee share (including Swap and leverage transaction fees) will be distributed to users who pledge Der in the form of Ethereum, providing them with additional economic returns. 4. By staking Der, users can not only reduce transaction fees, but after each transaction, part of the fees will be automatically returned to the user through the smart contract as part of the transaction reward. 5. Only node verifiers who have pledged enough DER on the platform are eligible to become challengers of the Deriw chain. This innovative design realizes the decentralized governance of the platform, where token holders participate and make decisions entirely. Such an architecture not only improves the security of the platform, but also enhances token holders’ sense of participation and control over the entire ecosystem. ## **Multiplier Points** \ When you stake Der, you earn reward multipliers at a fixed rate (1:1 with tokens) every second. Staking 1000 Der for a year will yield 1000 reward multipliers. Each reward multiplier will earn ETH rewards equivalent to regular Der tokens. However, once you unstake Der, the corresponding portion of reward multipliers will be destroyed. The percentage increase in fee rewards due to reward multipliers is calculated as: 100 \* (staked reward multipliers) / (staked Der + staked esDer). For example: Assuming your ETH fee yield is 10%, and you have staked a total of 10,000 Der and esDer with a reward multiplier of 20%, your expected yield wouldn't be $1000 but $1200, reflecting a 20% increase in yield. Typically, other projects offering yields are often plagued by inflation: as the number of stakers increases, the rewards per individual decrease. Setting aside the alleviation of inflationary pressure through esDer and maintaining a first-mover advantage, Der provides reward multipliers to mitigate the dilution of early participants' interests. **Managing Rewards:** Options on the Earn \page include: 1. Stake Multiplier Points: Claim and stake Multiplier Point rewards. 2. Claim DER Rewards: Claim vested and converted DER tokens from esDER. 3. Stake DER Rewards: Stake claimed DER. 4. Claim esDER Rewards: Claim pending esDER rewards. 5. Stake esDER Rewards: Stake claimed esDER. These actions can be performed via the "Compound" or "Claim" buttons on the Earn \ page. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.deriw.com/tokenomics/rewards.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.